At the time, it was the largest earnings restatement in American history.

"We might see quite a lot of earnings restatements, as the outside directors get more serious."

Some senior executives will probably decide not to sign their companies' disclosures, leading to more earnings restatements, he said.

Stock prices rose in apparent relief that there were few earnings restatements or other surprises.

A rash of earnings restatements could further diminish investor confidence.

"And improper revenue recognition is a major, if not the primary, cause of earnings restatements in the technology sector."

It expects a loss of $15 million to $20 million for the year from the earnings restatement and other factors.

Some executives see a silver lining in the earnings restatements.

An earnings restatement is among the greatest embarrassments that a corporation can bring on itself.

From 1990 to 1997, earnings restatements averaged 49 a year.